Priest says inflation plan won't help poor

New Government measures to deal with inflation failed to address the situation of the most vulnerable people, Father Sean Healy, of the Conference of Religious of Ireland's Justice Commission, has said.

An anti-inflationary strategy must include proposals to help the poor, he said.

While welcoming the measures "as far as they go", Father Healy said "much of what needs to be done can only be achieved within the annual budget process". He called on the Government to ensure that the next budget introduced measures to guarantee that poor people were not further excluded from the benefits of the rapidly growing economy.

These should "ensure that the gap between poor people and the better off in society does not widen further in the coming year", he said, adding that "it seems to be forgotten that in times of increasing inflation it is poor people who are most vulnerable".

Father Healy welcomed the focus on retail prices in the Government's strategy and the recognition that these have been a major contributory factor in the rising inflation rate. He also welcomed the additional £40 million for childcare but with the proviso that it not be focused on tax-based solutions.

"Tax-based solutions in the childcare area would mean poor people could not benefit. Childcare provision should be developed in such a way that it is available to all, not just the better off or those with a job," he said.

In terms of overall strategy, Father Healy demanded that the rise in take-home incomes, from wage increases and tax cuts, of those with jobs should be mirrored in social welfare increases.

Given the rise in inflation, he strongly urged the Government "to make a commitment now that the minimum social welfare payments will reach £100 per week by year two of the new national agreement". The Programme for Prosperity and Fairness is committed to this level of payment for year three.

Father Healy pointed out that it was crucial for people on social welfare not to fall further behind the rest of society. If they did not keep pace with the rise in take-home incomes of others in society, the gap between poor people and the rest of society would widen, he said. "Such a development is simply not acceptable in the midst of such economic growth."